auto
Eicher Motors
EICHERMOT · Nifty 50
₹7,509
Price 2026-06-17
At a Glance
Fundamental
85/100
STRONG
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
Eicher Motors scores 85/100 on fundamentals (strong). Eicher Motors: PE above historical average. BROAD EXPANSION regime.
Fundamental Score: 85/100 · STRONG · 0 signals detected
DuPont Analysis
ROE 22.0% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 21.97% is strong margin-driven and stable. Net margin of 24.0% × asset turnover of 0.71x × leverage of 1.3x.
What This Means
Net margin of 24.0% means the company keeps ₹24.0 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.71x means the company efficiently uses its assets to generate revenue. Leverage of 1.3x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
43.1%
Operating
31.2%
Net
24.0%
Gross margin 43.1% → operating margin 31.2% → net margin 24.0%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
WEAKCash flow only covers 0.9x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
COMFORTABLEInterest covered 100.3x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.1x is low — balance sheet has capacity.
Free Cash Flow
STRONGFCF margin at 15.4% — strong cash generation. Business is self-funding.
Peer Comparison
Eicher Motors is compared against 10 peers in the auto sector.
Key Watchpoints
Breaks above ₹7884 (+5%)
Trend reversal confirmation
Breaks below ₹7134 (-5%)
Further downside risk
PE reverts to 5Y median of 35.1
Valuation normalization
Auto sector entering leadership
Sector rotation signal
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
High revenue multiple. Market pricing in significant growth or margins expansion.
Profits are from core operations, not one-offs. High quality.
⚠️ 1 critical + 1 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes